The Balochistan Revenue Authority (BRA) has introduced an 8% sales tax on businesses offering rent-a-car and automobile rental services across the province, while also making registration with the authority mandatory for all operators in the sector.
BRA officials said the tax rate has been set through amendments to the Balochistan Sales Tax on Services Act, 2015, enacted under the Finance Act, 2025. Under the updated framework, car rental and vehicle hire services fall under an 8% sales tax category.
Officials added that all rent-a-car and automobile rental businesses are required to complete their registration with the BRA and file tax returns within the prescribed timelines as required by law.
The authority has warned that firms which fail to register, pay due taxes, or submit returns on time may face strict legal action, including fines and other penalties outlined in the relevant legislation.
To ensure compliance, the BRA said it has stepped up field operations across Balochistan. Special teams have been formed to visit business centers in various districts to identify unregistered operators and bring them into the tax net.
The BRA also highlighted its role in provincial finances, stating that it contributes more than 80% of Balochistan’s provincial revenues, which it said are crucial for funding development projects in the province.
